If you look at the cycle of our economic ups and downs, the recession we have just gone through has clearly outstayed its welcome. This current recession has lasted around 19 months, far and away the longest economic slowdown in our history.

The following is an excerpt from the July edition of Moody’s economy.com, and if you would like to read the entire report it is posted on our website, click here.

“Although house prices are not expected to stop falling before mid-2010, the pace of decline will be slower than the national average. Unlike the worst hit housing markets in the nation, Charlotte’s housing market is not oversupplied. Rather, rapidly rising unemployment and income losses are the main culprits behind the area’s weak housing market. Despite the persistence of these negative fundamentals, foreclosures have edged down recently, according to data from Realty Trac.

Median house prices also fell less than at the national level. Although these developments provide some hope that Charlotte’s housing market is headed toward stabilization, the above-average unemployment rate will come in the way of faster progress. The lack of improvement in home sales despite lower interest rates earlier this year illustrates this point.

Although job losses have abated somewhat, the recovery of the Charlotte economy will be weaker than had been expected earlier this year. Restructuring in the banking industry will result in a below-average short-term performance. The fallout from housing and global credit issues is adding stress to financial firms and the business service companies that support them. Nevertheless, Charlotte still has advantages in its highly educated workforce, mix of industries, and comparatively low living and business costs. In the long term, Charlotte is expected to outperform the U.S. Economy.”